Harsh Mariwala has been an entrepreneur for nearly 50 years, and has seen through many a boom and downturn to create a billion-dollar enterprise in Marico. But even the seasoned entrepreneur has been taken aback by the disruption created by COVID-19.
"I have never seen anything like this in my career," says Mariwala in an interaction with Moneycontrol.
At the same time, the Marico chairman believes, this could be a defining moment. "These are the times when you virtually start questioning everything. There are lessons for all human beings, the attention we give to health or environment, and issues like sustainability and even supply chain issues," said Mariwala.
India has now reported 5,000 people with the COVID-19 infection, and 149 have died. Globally, the virus has taken the lives of more than 82,000 people, and nearly 15 lakh people have been reportedly infected.
The virus, and the resultant lockdown, has created a huge dent on economic activity with many sectors, including aviation and auto, facing severe crisis.
But there are lessons to be learnt, for Indian entrepreneurs and CEOs on conducting business.
For instance, says Mariwala, entrepreneurs may now avoid calling over people for meetings in office, and instead do with a video call. "Sometimes people have to travel two hours to do a 15-minute meeting. From now on, unnecessary travel, including inter-city, will be avoided," says Mariwala.
Work from home
How about work-from-home, something that has come into focus during these times? While Mariwala agrees that for specialised, individualistic jobs, work-from-home may work, working in office has its benefits.
"One gets to think and have dialogues at office," says Mariwala, clearly indicating his preference.
That, however, hasn't prevented the veteran businessman and a doting grandfather to make the most of the time he is spending at home. "Now I'm able to spend more time with my grandchildren," he says.
Mariwala has created a schedule that includes yoga routines in the morning, checking mails, doing call and an evening walk. "Every evening, I and my wife catch up with our friends on Zoom app. There are about 10 of us, and we chat. Sometimes we even pour a drink for ourselves," he adds, with a chuckle.
Lessons for the FMCG sector
COVID-19 has seen customers lining up at outlets to stock up on essentials. Demand for some of the products has shot up.
This means that the FMCG sector may not be as impacted as the other sectors. "It is less impacted, as consumer spending on these goods has not been impacted as much as, say on cars," says Mariwala.
At the same time, the lockdown and the increased demand have led to disruptions in supply chain. "We are facing a lot of issues because of lack of transportation and people. Right now, only 25 percent of the demand is being met," says Mariwala.
The experience though could now make companies look at supply chains differently. "Earlier there was a trend of zero inventory. After the present experience, people will start questioning that practice," says the entrepreneur.
"If one is highly dependent on one country, say China, for a raw material, then there will be a need to broaden the base. There will be supply chain-rethinking," points out Mariwala.
There could be other opportunities too. COVID-19 has brought back the focus on hygiene and health, and this, he says, will lead to FMCG companies coming out with more products that centre around health, hygiene and sustainability.
Countering the virus
India Inc has responded to the COVID-19 pandemic in a resounding way, with entrepreneurs and companies announcing aids, or converting their facilities to produce equipment that can be used to fight the virus.
Mariwala has called on entrepreneurs to come up with innovative ideas to fight the virus, promising them with grant and help, to come out with products.
He has teamed up with Amit Chandra, Chairman of Bain Capital Private Equity, to launch the #Innovate2BeatCOVID challenge. Handled by their foundations - Marico Innovation Foundation and A.T.E. Chandra Foundation - the challenge has got over 1,000 interests.
"Based on the demand for things like masks, ventilators and other equipment needed to fight the virus, we realised that there could be a shortage," says Mariwala.
The challenge, he adds, is an opportunity for innovators to come up with quick ideas that can be translated into products. The challenge, the last date for which is April 10, comes with a grant of Rs 2.5 crore. There is scope, says Mariwala, to increase the grant to Rs 5 crore.
After the initial filtering, a jury - which includes scientist Dr RA Mashelkar, will select the winners. "We will act as a catalyst. Apart from the award, we will hand-hold the company or an individual in areas where there is a need. Someone may need regulatory help, others space for manufacturing," adds the entrepreneur.
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